USD/CAD trims losses to 1.3170 ahead of US data

The greenback continues to recover part of the ground lost vs. its Canadian neighbour on Thursday, now sending USD/CAD to the 1.3170/75 band.

USD/CAD supported near 1.3140

After bottoming out near 1.3140 in early trade, the pair has sparked a correction higher as CAD continues to shed pips following increasing downside pressure around crude oil prices.

Data wise in the US, Initial Claims and trade balance figures are up next and will likely keep the focus on the greenback after yesterday’s dovish tone at the FOMC meeting.

USD/CAD significant levels

As of writing the pair is losing 0.11% at 1.3172 and a breakdown of 1.3036 (20-day sma) would aim for 1.2975 (55-day sma) and finally 1.2858 (low Jul.14). On the flip side, the immediate up barrier aligns at 1.3244 (high Jul.26) followed by 1.3311 (38.2% Fibo of the 2016 down move) and then 1.3575 (50% Fibo of the 2016 down move).